Practi

ceSet -
1
Subject:Economics(MoneyandCredit
)
F.
M:8
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1.Giv
eonespeci
alf
eaturet
hatdist
ingui
sh
for
malsect
orfr
om i
nformalsect
or.
(1)
Ans.RBIsupervi
sesthef
uncti
oni
ngofthefor
malsour
cesof
credi
twhil
enoor gani
zat
ioni
stheret
osuperv
isest
helendi
ng
acti
vi
tiesi
finf
ormalsour
cesofcredi
t.

2.Howmuchpercentageoft
otaldeposi
ts
bankshol
dascashreserv
es?(
1)
Ans.15%oft
otalcashr
eser
vesr
eser
ves

3.Namethesyst
em i
nwhichdouble
coi
nci
denceofwant
sisessent
ialf
eatur
e.
Ans.Bar
tersy
stem.

4.Di
scusst
hehi
stor
icalor
igi
nofmoney
.(5)
Ans.Hi
stor
icalor
igi
nofmoney
:
(a)Ani
malmoney :Fi
rstofal
l,humanbeingsusedanimalsas
amedium ofexchange.Forexample,
theVedicli
terat
uretel
ls
usthatcowsorhorseswereusedasmoneyi nIndia.
(b)Commodi t
ymoney :Bef
oretheinvent
ionofmoneysever
al
commodi t
ieswereusedasmoney .Eventodayinsmall
vil
lagesf
ood-grai
nsl
ike,wheat
,horsegram,ri
ceetc.ar
eused
ascommodi tymoney.
(c)Metal
li
cmoney:Manusedmet al
,l
ikecopper,
sil
ver
,gol
d,
etc.asamedi
um ofexchange.Coi
nswer emint
edby
goldsmit
handusedasmoneyunt i
lpapermoneywasinvent
ed.
(d)Papermoney :Chinawast hef i
rstcountr
ythatstart
ed
usingrepr
esentati
v epapercurrencystandard.Cert
ainquant
it
y
ofgoldiskeptasr eser
veinpr oporti
ont ocurr
encynotes
i
ssuedatt heparti
cularpointoftime.Coinsarealsoused
besidespapercurrencyinourcount ry.
(e)Cr edi
tmoney:Credi
tmoneyisalsoknownasbankmoney .
Itreferstobankdeposi
tskeptbypeoplewit
hbankswhichare
pay ableondemandandcanbet ransf
erredfr
om onepar
tyt
o
anot herthr
oughcheque/demanddraf
ts/payorder
set
c.